War and Inflation Could Propel Bitcoin Prices, Says BitMEX Co-Founder

Arthur Hayes, co-founder of BitMEX, forecasts a significant rise in Bitcoin’s price driven by geopolitical tensions, particularly in the Middle East.

He believes that increasing military spending will lead the U.S. government to print more money, resulting in inflation and a weaker dollar. This monetary expansion could encourage investors to turn to Bitcoin as a hedge against inflation.

Recent inflation data, including a rise in the Producer Price Index to 1.8%, heightens concerns about economic stability. Hayes argues that historical trends show wars often trigger monetary expansion, further enhancing Bitcoin’s appeal as a decentralized asset.

He expects that escalating conflicts, particularly between Israel and Iran, will push energy prices higher, benefiting Bitcoin as fresh capital enters the market. Despite potential volatility, he views Bitcoin as a modern-day equivalent to gold, likely to thrive under inflationary pressures.

To manage risk during this uncertainty, Hayes has reduced exposure to smaller cryptocurrencies and urges traders to focus on financial security. He asserts that ongoing U.S. military aid, funded by debt, will continue to support Bitcoin’s long-term growth, making it a strong hedge against fiat currency devaluation.